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ehidna [41]
3 years ago
12

In 2011, Edwin Ryan bought 100 shares of a listed stock for $5,000. In June 2014, when the stock’s fair market value was $7,000,

Edwin gave this stock to his sister, Lynn. No gift tax was paid. Lynn died in October 2014, bequeathing this stock to Edwin, when the stock’s fair market value was $9,000. Lynn’s executor did not elect the alternate valuation. What is Edwin’s basis for this stock after he inherits it from Lynn’s estate?
a.$0
b.$5,000
c.$7,000
d.$9,000
Business
1 answer:
lara [203]3 years ago
4 0

Answer:

B) $5,000

Explanation:

Under Section 1014 (a) the basis of any property acquired by a decedent (Lynn) through a gift within 1 year of death and passed back to the donor (Edwin) due to the decedent's death, will be adjusted to the basis immediately prior to the death.

In other words, since Lynn died within 1 year of receiving Edwin's gift, Edwin's basis will be the same as Lynn's basis.

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Backstreets Co. recently acquired all of Jungleland Inc.’s net assets in a business acquisition. The cash purchase price was $6.
sveta [45]

Answer:

The goodwill is $1.1 million

Explanation:

In this question, first we have to compute the net asset which is shown below:

Net asset = Total asset - total liabilities

where,

Total asset = Land + building + inventory

                  = $1.7 million + $3.4 million + $2.2 million

                  = $7.3 million

And, the total liabilities = long term note payable = $1.5 million

So, the net asset would equal to

= $7.3 million - $1.5 million

= $5.8 million

Now the goodwill equal to

=  Cash purchase price - net asset

= $6.8 million - $5.8 million

= $1.0 million

7 0
3 years ago
During global culture training for a group of employees who are being transferred to Egypt, Charmaine, the HR training manager,
joja [24]

Answer: Option E

Explanation: Cultural training refers to the training that is given to an individual for informing them about other cultures know-how.

In the Arab culture, the holding of hands is considered as an act of giving respect to others. It is considered as showing devotion and equality to the opposite party. Such acts comes from the well known hospitality culture of Arabic countries.

Thus, from the above we can conclude that the correct option is E.

7 0
3 years ago
The rate of interest on money held in a savings account, _______ the amount of money saved.
KIM [24]
A. Decreases


Hope it helps!
4 0
2 years ago
Which of these is not an advantage of entrepreneurship
Alchen [17]

Answer: 2

Explanation: You don't automatically gain foresight when you start a business

8 0
3 years ago
An employee earns $5,550 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400
Klio2033 [76]

Answer:

$4,713.425

Explanation:

The computation of amount of net pay for the employee for the month of January is shown below:-

Deductions = (Gross earning × Social security tax rate) + (Gross earning × Medicare tax rate) + Federal income taxes + Health insurance + Contribution of retirement plan

=  ($5,550 × 6.2%) + ($5,550 × 1.45%) + $184 + $152 + $76

= $344.1 + $80.475 + $184 + $152 + $76

= $836.575

Net pay = Gross earning - Deductions

= $5,550 -  $836.575

= $4,713.425

Therefore for computing the net pay we simply applied the above formula.

3 0
3 years ago
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